RMC pays £141m for Severn Trent subsidiary

Materials group RMC has sold its waste management division Hales to Seven Trent subsidiary Biffa Waste Services for £141m.

The disposal of Hales Waste Control and RMC Environmental Services forms part of a major rationalisation programme as the group attempts to cut its net debt below £1bn by the end of the year.

Under the deal, RMC has received £126m in cash with Biffa paying a further £15m to ING Lease Fleet Finance to purchase vehicles and equipment used in the Hales business.

Last year, Hales reported a pre-tax profit of £9m on turnover of £112m last year.